What You Need to Know About Retail Consolidation if You're Shipping to Walmart

Shipping to Walmart involves understanding and navigating stringent logistics requirements. As the world’s largest retailer with $648 billion in global revenue for its fiscal year 2024 and a market share of the U.S. retail market of 8.59%, shipping to Walmart is big business. Walmart’s compliance and On-Time, In-Full (OTIF) standards are critical for shippers aiming to maintain a strong business relationship with this retail giant. One effective strategy to meet these standards is leveraging a proficient retail consolidation program, especially with an experienced third-party logistics company (3PL) provider, such as ODW Logistics. 

What is Walmart Retail Consolidation?

ODW Logistics offers a freight consolidation solution for shippers wanting to improve their logistics efficiencies shipping into Walmart’s 42 DCs - we call it retail consolidation. ODW’s retail consolidation center is centrally located in Columbus, OH and includes 5 million square feet of warehouse space. Every week, ODW consolidates freight for over 30 shippers into more than 150 truckload shipments to Walmart DCs across the US. As opposed to riding Less-Than-Truckload (LTL), these consolidated shipments maximize space utilization of the truck which effectively reduces costs, minimizes stops and potential damages, and can help improve Walmart OTIF scores.  

How does it work? Inbound shipments first arrive at any one of our 15 ODW facilities in central Ohio. Freight is mixed with other client freight to maximize trailer utilization and build the most efficient shipment possible. These shipments are optimized for cube and weight, maximizing transportation savings. ODW then coordinates the distribution of this consolidated freight to Walmart Distribution Centers across the country.

Retail Compliance Requirements for Shipping to Walmart

Shippers must stay updated on Walmart's changing compliance requirements to avoid chargebacks. Compliance issues, such as incorrect pallet grades or mis-stacked cases, can lead to significant financial penalties. As retailers demand higher OTIF performance, shippers must be prepared to meet these standards consistently. We help you navigate these changes and ensure your freight adheres to Walmart’s demands. Our dedicated team has direct relations with Walmart to ensure we are maximizing your efficiencies. 

Walmart Retail Compliance for Food and Beverage Shippers

Partnering with an experienced 3PL provider with an advanced retail consolidation program allows food and beverage shippers to stay ahead of compliance updates. An experienced 3PL, such as ODW Logistics, takes responsibility for ensuring retail compliance, managing the transportation leg of freight, and vetting carriers to avoid compliance blind spots for shippers.

Walmart’s OTIF Requirements

Walmart’s OTIF requirements are designed to ensure that the right inventory is available for customers when they want it. The OTIF metric evaluates whether shipments arrive on time and in full.

Was the shipment on time? Walmart designates a specific drop-off window for each delivery. A delivery is considered on time if it arrives within this window. Early and late deliveries may incur monetary penalties for the supplier.

Did the shipment arrive in full? Walmart expects the delivered goods to match the purchase order exactly. Any discrepancies in quantity or product may result in monetary penalties for the supplier.

As of February 1, 2024, Walmart’s OTIF requirements for prepaid shippers are:

• 90% on-time
• 95% in-full

How to Reduce OTIF Fines from Walmart

Reducing OTIF fines can be challenging, but partnering with an experienced Walmart logistics expert, such as ODW Logistics, can make a significant difference. We have a rigorous retail compliance process that ensures inventory accuracy and freight preparation, meeting Walmart’s specifications. ODW’s retail consolidation program helps shippers improve compliance and improve OTIF scores by up to 90% in some cases.

What are the benefits of ODW Logistics’s Retail Consolidation Program?

• Cost Savings: Shippers save an average of 20% - 30% on transportation costs.
• Improved Walmart Retail Scorecards: Efficient shipping processes lead to better performance metrics with Walmart.
• Improved Walmart OTIF Scores: Enhanced and efficient shipping processes mean freight is delivered to Walmart sooner and at a lower cost, improving the shipper’s Walmart retail scorecard.
• Reduced Carbon Footprint: Optimized trailer utilization cuts down on the number of trucks on the road.
• Mitigated Supply Chain Risks: Fewer touches on freight reduce the chances of damage or loss.

Partnering with a knowledgeable 3PL provider, such as ODW Logistics, ensures that shippers can navigate Walmart’s complex shipping standards successfully. A reputable partner with the right technology, volume, personnel, and strategic approach is essential for delivering a robust retail consolidation solution that meets both the shipper’s unique needs and Walmart’s stringent requirements.

Understanding and leveraging ODW Logistics’ Walmart Retail Consolidation Program is crucial for shippers aiming to meet the retail giant’s compliance and OTIF standards. By partnering with an experienced 3PL provider, shippers can achieve cost savings, improve their performance metrics, and navigate the complexities of Walmart logistics with confidence.